Barton under Needwood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Barton under Needwood enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Barton under Needwood you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Barton under Needwood leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Barton under Needwood can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Barton under Needwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Alexander, came seriously near to the 80-year threshold with the lease on his two bedroom flat in Barton under Needwood. Having purchased his home two decades ago, the length of the lease was of little concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Alexander arranged for a lease extension just under the wire last March. Alexander and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,125.
In 2011 we were contacted by Mr A Johnson who, having acquired a purpose-built apartment in Barton under Needwood in September 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable flats in Barton under Needwood with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated in 2096. Given that there were 71 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last Autumn we were called by Mr and Mrs. T Parker , who moved into a studio flat in Barton under Needwood in July 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Barton under Needwood with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 10 June 2085. Given that there were 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.